• Business Growth & Optimisation

How to Write a Business Plan: A Step-by-Step Guide

11 min. read31.05.2021
By Team Zeller

A business plan is critical to achieving your growth goals.

Whether you’re getting your brilliant business idea off the ground or looking to scale an already established venture, the best way to be prepared is to develop and stick to a business plan.

Business planning can be a long and complicated process, if you don’t know the appropriate scope or level of context to explore. Keep reading to learn how a business plan is going to help your business succeed. Then, follow the steps in our business plan template as you put pen to paper and write your own blueprint for success.

Why business plans are necessary

A business’s success relies on a laundry list of items that require considerable attention, including rigorous market research, effective strategies and finance. An effective business plan requires a business owner to consider all of these things.

A business plan isn’t just an outline for what an entrepreneur imagines their business becoming. It’s documentation of each and every step to achieving both short and long-term goals — providing accountability, direction, and valuable information that business owners can reflect back on throughout the different stages of running their business.

An effective business plan serves a number of purposes.

Business plans highlight business risks

Starting and scaling a business is inherently risky. Expanding too quickly or in the wrong market, failing to undertake a suitably specific market analysis, or ignoring gaps in the existing market can have significant ramifications.

small-business-plan-template

In Australia, 50% of businesses fail within their first three years. Of the businesses that don’t make it, many fail due to poor financial planning, preemptive expansions, and overall lack of experience and knowledge from leaders — however, the overwhelmingly common reason for business failure is lack of cash flow.

One of the most important steps in creating a business plan is working out how cash will flow in and out of your business. The faster you can access your takings, the faster you grow your business. The right EFTPOS machine can help speed up the process.

Business plans help to secure funding

The average Australian business takes around a year and a half to become fully funded. Some new business owners dip into their personal savings or turn to friends and family members for startup costs — but this isn’t an option for every new business owner. Sometimes, funding from external sources will be necessary.

Your best bet for securing funding from investors or financial institutions is compiling a detailed and strategic business plan.

However, not all businesses will require a loan. The Australian Government has prepared a guide to help entrepreneurs determine what their funding needs are. It’s worthwhile doing the maths to figure out if your business can grow without the additional expense of loan interest.

Business plans help identify unique selling propositions

To succeed, businesses need to offer something that customers can’t get anywhere else — whether the product or service itself is unique, or it is delivered in the best or most affordable way. These factors are called unique selling propositions (USPs).

In the beginning stages of developing a business plan, when the vision and objectives are explored, these USPs should become clear. They will become critical to marketing your business.

Business plans create accountability

Building a business from the ground up requires a business owner to take on many responsibilities and constantly complete complex tasks. It can be easy for a new business owner to get lost in their many responsibilities and forget their initial vision. A business plan will serve as a blueprint for what was envisioned.

The same goes for scaling an established business. Many business owners hold off on hiring additional staff before it’s certain that the business is growing at the speed anticipated, meaning there’s often a period of understaffing. A business plan will help to ensure everyone involved understands the direction of business growth, and is on a clear path to success.

Now you understand the importance of writing a business plan, it’s time to consider six essential steps you'll need to complete before putting pen to paper.

6 steps to writing a successful business plan

A business plan should be a succinct document, outlining everything from your growth goals, to your marketing budget, to business risks and plans for mitigation.

Consider the below steps as preparation work necessary to create an effective business plan that you can use to keep yourself and your business partners aligned for years to come.

1. Determine your vision and objectives

The very first step of writing a business plan is solidifying the motivation behind the business itself. That means establishing a purpose, mission statement and vision statement. These three things must be aligned.

Purpose

When someone comes up with a business idea, the purpose is likely the first thing they think of. It’s the whole reason for starting the business in the first place. Whether the business’s objective is to make unique, delicious food, or provide a valuable service that the community lacks, the purpose is the driving force behind the innovation. This is also where a business’s USPs begin to emerge.

When a business owner decides to grow their business, the purpose outlined in their business plan may stay the same — but on a bigger scale — or it may shift the direction of the business to keep up with a change in market conditions, for example.

Mission statement

A mission statement is what business owners will show lenders and investors when trying to secure funding. It establishes how the business will meet its goals. There are four questions business owners should ask themselves when drafting a mission statement.

They are:

  1. What industry is the business in?

  2. What are the business’s goals?

  3. What key terms describe the business and what it offers?

  4. How can the business’s objectives best be described?

Many businesses choose to publish their mission statement on their website, to give customers some context as to why they should support the business. Depending on your particular circumstances, this might be a good idea — considering the propensity of Gen Z to support businesses that align with their values.

Vision statement

A business’s mission statement is rooted in what the business can accomplish in the present, and how its day-to-day actions will uphold its values — whereas a vision statement is focussed on the future.

A vision statement looks 5 to 10 years into the future and provides the context for setting long-term goals. How will strategies change as the business grows? What is the correlation between short-term growth goals and objectives and long-term business health?

If the mission statement is the blueprint for today, think of the vision statement as the plan for tomorrow.

2. Solidify your structure

Every business has a legal structure that determines rights, responsibilities and more. The legal structure is sometimes decided for the business owner based on the size and the type of business, as well as goals and plans for growth. However, there is often room for flexibility — so it’s up to a business owner to choose the right structure for their venture.

The most common legal structures are:

  • Sole trader: A sole trader is someone who owns a business independently. No partners are involved, so the business owner makes all decisions, bears all of the responsibility and accountability, and is the sole beneficiary of the profits.

  • Partnership: A partnership forms when two or more people go into business together. They share the responsibilities as well as the profit.

  • Trust: A trust is a person or group of people who own and manage a business for the benefit of others. The owners bear all of the responsibility and liability, but the beneficiaries receive the income.

  • Company: A company is its own entity, separate from the people who own and operate it. This means that the shareholders of the company are less liable if and when the organisation is sued or incurs debt, and it also means that they have less control over company decisions.

  • Incorporated association: Like a company, an incorporated association is a legal entity. It is generally established for social, community or charitable purposes, yet it has the same rights as a company.

A business plan will need to include an overview of the business’s structure, including a “who’s who”, so it’s important to understand the implications that come with your chosen structure.

3. Conducting market research

It’s essential to conduct a market analysis before diving too deep into a business plan. Market research provides important context on the industry, including how necessary a business’s product or service is, who the target market will be, and who the business’s competitors are.

There are many directions to go in market analysis. Some effective ways to obtain information on the industry and target audiences include:

  • Taking advantage of available statistics. IBISWorld has information and statistics on various industries and is frequently updated to keep up with changing trends. Business owners should also check business indicators through the Australian Bureau of Statistics.

  • Connecting with the public. Use free online survey services to gather consumer information. Business owners can ask about consumer preferences on particular products, customer service, delivery channels and more. There are many free options out there — Wordstream, an online advertising organisation, has compiled a list of what of the 10 best survey services.

  • Utilising available software. Google Trends is a free online service that can help business owners understand changing trends within their target market. Keep track of keywords relevant to the industry your business operates in, and see if search volume is growing over time.

  • Testing competitors. Business owners should buy from their competitors to get a sense of the quality of their products or service, as well as their customer service. Retail store owners should shop from other stores that sell similar products and test them for themselves. Restaurant owners should dine at other restaurants that serve similar food, and owners of service-based organisations should book their competitors.

competitor-analysis-business-plan

Use this insight to determine how your offering compares to your direct competitors'.

The market research stage can be a great opportunity for business owners to connect with potential customers for the first time — perhaps through market research or survey groups. By connecting with potential customers, you’ll learn more about who your target audience is, and how they spend their money, while also generating brand awareness for your business.

4. Devising a marketing plan

The next step towards documenting a business plan is to devise a marketing plan, which is heavily informed by the market analysis — as well as the particular growth goals of the business. Your marketing plan will help to refine your budget and provide the structure for upcoming marketing activities.

When creating a marketing plan, keep the 7 P’s in mind.

  • Product (or service). Business owners should consider how they can use their product or service to their advantage. Is it something that can be packaged in an exciting way? Does it photograph well, meaning it would be easy to advertise on Instagram or other social media platforms? Business leaders should leverage these unique opportunities.

  • Price: Businesses frequently use pricing as a differentiating factor. In general, the price should be high enough that customers know it’s of good quality — yet low enough that it competes with similar businesses.

  • Place: Where a business is physically located can often impact whether or not a customer shops there. Convenience is a key factor for most consumers, and something businesses should seek to advertise where possible.

  • Promotion: No matter the product or service, it will need promotion in one form or another. Established businesses may be able to rely on word of mouth, but for a new businesses promotion is critical. The marketing rule of seven states that customers must come into contact with a brand name seven times before they decide to make a purchase from that brand. This could be through Facebook ads, printed flyers, a blog — it really depends on the business and its target market.

  • People: People are the backbone of any business. Hiring a friendly, knowledgeable and hardworking staff is key to attracting and retaining customers.

  • Process: The ease with which a customer can purchase a product or book a service may be an element you choose to advertise, for example. A straightforward purchasing process, simple returns process, and speedy customer service are beneficial to both businesses and customers.

  • Physical environment: It’s not enough for a product or service to be of a high quality — the physical environment of a business needs to be pleasant and inviting. That means comfortable chairs in a restaurant or visually appealing decór in a store.

5. Write a shopping list

The equipment a business needs to operate will depend largely on the type of business it is. Equipment can fall under two categories: tangible and intangible.

Tangible equipment

Tangible equipment means physical items.

Some types of tangible equipment are universal to most, if not all, businesses. For example, all businesses with in-person locations need a payment processor — otherwise, they would be restricted to operate as a cash-only business, which is often unappealing to customers. In fact, 50% of Australians find cash-only businesses inconvenient.

Businesses can take convenience to the next level — for their customers, employees and business owners — by opting for a mobile electronic funds transfer at point of sale (EFTPOS), such as Zeller Terminal. Read more about the benefits of this type of payment processor on the blog.

Other types of equipment may be required, depending on the industry the business operates in. For example, a restaurant may need a walk-in fridge while a trades provider may need a concrete mixer.

Equipment can be expensive, so equipment financing or leasing might be the best route for some business owners. Money.com has a tool for finding equipment financing options.

Intangible equipment

Intangible equipment includes things like a website and accounting software, which are essentials for most businesses regardless of the industry in which they operate.

Businesses typically need a website to get their name out there and provide convenience for customers — whether that’s through e-commerce, or providing a mechanism through which to book a service.

The cost of tangible and intangible equipment will need to be taken into account when creating a budget and financial projections. This is why determining the types of equipment necessary, as well as their costs, early on is important in drafting a business plan.

6. Make a plan to manage finances

Your budget is one of the most important elements in your business plan. You need to understand how much you are able to spend to grow your business, and whether you will be able to generate an income from the business. Fixed costs, such as rent or mortgage, salaries, business insurance and possible equipment leases or equipment financing should all be taken into account — as should variable costs, such as hourly wages, utilities, products, materials, and more.

At a minimum, you will need to create a cash flow plan and establish a balance sheet. These track the money coming in and going out of the business, which is critical to manage in order to ensure your business survives long term.

Once set up, business owners can assess their monthly spending and earnings by analysing their merchant statement at the end of each month, which they will receive if they open a business account. These accounts are essential for long-term business health because they keep business owners organised and provide crucial information on cash flow.

Start writing your business plan

The meticulous research and planning involved in developing a comprehensive business plan can help business owners avoid some of the problems most commonly faced when building or scaling a business.

Once you’ve followed the above preparatory steps, follow our business plan blueprint. Use it to hold yourself to account and make sure business remains on track. Make sure to revisit your business plan at least every year, and make any changes as necessary.

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How to Start a Business in 10 Steps

Follow our small business checklist to help get your new idea off the ground . If you’ve decided to start your own business, it’s likely you’re feeling as excited as you are nervous. Running your own business is an extremely rewarding experience — choosing your own hours, following your passion, and having the freedom to express your creativity are just some of the many benefits. But nothing comes easy, which is why it’s important to equip yourself with as much knowledge as you can before launch day. Being prepared will mitigate the challenges that are part and parcel of entrepreneurship, and will allow you to make the best decisions to set your business on the right trajectory. Coming up with a profitable idea, understanding your target market, and sussing out the competition are all essential first steps, but there’s more to it than that. To give your business the best chance of success, we’ve summarised the ten important steps every Australian business owner needs to take prior to launching. The ultimate business checklist for getting started in Australia 1. Come up with an idea All the most successful businesses solve a problem. No coffee shop close to your local school? That’s a problem for parents. No gluten-free salad dressings on the market? That’s a problem for celiacs. No sustainably-made dog collars? That’s a problem for eco-conscious pet owners. Your ability to fill a gap in the market better than anyone else will be the key to your business’s success. Remember that often, customers won’t even know a problem exists until you present them with the solution. If you’ve never heard of a Portuguese tart before it’s likely that you don’t know that a bakery specialising in Portuguese tarts is missing from your life. So, when searching for or refining your business idea, consider the following: Does my business solve a problem? Does my business improve upon the current product or service offering? Is there an underserved demand for my product or service? Does my product or service bring a new perspective to an existing industry? If you answered yes to one or more of these questions, you’re off to a great start. 2. Research the competitive landscape In order to gauge the size of the market you are entering, you’ll need to research the competition. Look for local competitors that sell the same, or similar, products or services. If there are many, you’re going to need to develop a unique value proposition, that is, an offering that sets you apart from the rest and gives customers a reason to visit your business over an established competitor that they know and trust. This research will allow you to identify gaps in the market and potential opportunities upon which you can capitalise. Additionally, it will help you to develop your own pricing strategy that is competitive and attractive to customers, and will give you an idea of the marketing tactics being used in your space. To stay up to date on the latest developments and announcements, join the mailing lists of your competitors, follow them on social media and set up Google alerts for business names or topics related to your industry. 3. Apply for an ABN and register for GST While these steps won’t apply to every business, the majority of businesses operating in Australia will be required to apply for an Australian Business Number (ABN) and Goods and Services Tax (GST). An ABN is a unique 11-digit identifier that is issued by the Australian Business Register (ABR) to businesses and organisations operating in Australia. It is free to apply and can be done through an online application or by submitting a paper form. It’s important to note that businesses are required to have an ABN before they can register for GST, claim business tax deductions, or access other government services and programs. If your projected annual turnover exceeds $75,000 (or $150,000 for non-profit organisations), you will also need to register for GST. Once registered, businesses must charge GST on their goods and services sold, and remit this amount to the Australian Taxation Office (ATO) on a regular basis. The current rate of GST in Australia is 10%, which means that businesses must add 10% to the price of what they are selling. 4. Understand your legal requirements At best, regulatory requirements are a headache. At worst, they’re a major roadblock. To ensure that you are across all your legal responsibilities and restrictions as a business, it is imperative that you check the Australian Business Licence and Information Service . This online service will help you find any licences, permits, and/or registrations you might need to operate legally in Australia. It may also be a good idea to check with your local council, as some restrictions may only apply to a very small area. For example, in some areas of Melbourne, you are able to roast your own coffee beans on-site, whereas in others, regulations will prevent you from doing so. If you’re ever unsure, it’s a good idea to seek expert legal advice. While it may cost you upfront, it will save you money and stress in the long run. Doing your research early will reduce the burden of compliance later on. 5. Find a name Your business name needs to effectively communicate your brand identity, resonate with your target audience, and help your business stand out amongst the competition. What’s in a name you ask? All of the following. Brand identity: Your business name should be unique, memorable, and reflect your brand identity. Consider what image or impression you want to convey to customers and make sure your name aligns with that vision. Clarity and simplicity: Your business name should be easy to spell, pronounce, and remember. Avoid using complex or obscure words that may confuse or alienate potential customers. Conversely, it should not be so vague that it cannot be easily found when customers search it on Google. Domain availability: Your business name should be available as a domain name so that you can create a website that matches your business name. Check for domain availability before finalising your business name. Legal considerations: Make sure your business name is not already trademarked or being used by another business. Scalability: Consider whether your business name will still be appropriate if your business expands or evolves over time. Avoid using a name that limits the potential growth or diversification of your business. Industry relevance: Consider how your business name relates to your industry or niche. Your business name should be relevant to what you do and appeal to your target audience. Cultural sensitivity: Be mindful of cultural and social sensitivities when selecting a business name. Avoid names that could be offensive or insensitive to certain groups of people. 6. Test your idea Market research, surveys and feedback from small business communities are all valuable. Yet the best way to confirm your business idea is a good one is to start selling your product or service. Paying customers will always be the best source of feedback. A soft launch is a good way to see how people will react to a product before making it available to the greater public. Invite a small pool of people to test your offering. If possible, use the opportunity to take pre-orders and generate some initial funding to cover your first inventory. If you’re selling products such as homemade goods, clothing, homewares or coffees, consider renting a stall at your local market. It’s a cost-effective way to get your business out there and market your product without investing heavily. Additionally, having the opportunity to speak directly with customers lets you gain insight from them and allows you to spread the word about your upcoming opening. If you’re planning on running a service business, consider starting with a discounted trial. Make sure to ask your first customers for a testimonial that you can use in your initial advertisements on social media, or a review on  Google My Business . 7. Write a business plan Whether or not you are looking for investors, lenders or partners, writing a business plan is a highly valuable exercise for any budding business owner. Writing out a detailed overview will help you to articulate and refine your business idea, which will in turn help you to communicate it to anyone you’d like to get on board. It will be a very useful asset to have on hand, at least during the initial stages, as it will serve as a roadmap to keep you on track and to not lose sight of your objectives. It doesn’t matter if you haven’t got all the answers just yet, you can always review and change it later. The first iteration of your business plan should include the company's goals, strategies, and financial projections. While it might be daunting at first, going through each step will likely uncover questions or blind spots and will help you know which tasks to prioritise. Keep the plan manageable and succinct, as you may have to deviate and review it as your business grows. Click here for our step-by-step guide on how to write a business plan . 8. Decide on a legal structure There are a number of ways to legally structure a business in Australia. Knowing the difference now will save you a lot of time and effort down the track as your legal structure impacts critical parts of your business — such as your personal liability and tax obligations. It can also be difficult to change later on. There are five main types of  business structures  to consider when setting up a new business. Sole trader:  an individual trading on their own. Partnership:  a business owned by two or more people who share profits and losses. Company: a legal entity that is separate from its owners (shareholders). Trust: an entity that holds property or assets for the benefit of others (beneficiaries). Co-operative:  a business owned and operated by its members, who share profits and decision-making authority and usually established for recreational, cultural, or charitable purposes. Choosing the right legal structure for a business depends on factors such as the number of owners, liability protection, tax implications, and management structure. It is important to consult with a lawyer or accountant to determine which legal structure is best for your business. 9. Set up a business bank account and organise your finances From tax compliance to accessing funding, planning investments and managing cash flow, there are countless reasons why every business owner needs to organise and streamline their finances from the get-go. It doesn’t have to be as complicated as most of the mainstream banks make it though. Zeller is an Australian provider that simplifies the process in all of the following areas: Business Bank Account: Whether you’re at the very first stages of planning, or are about to launch, having a financial account specifically for your business transactions is essential. Thankfully, at Zeller, setting up a business bank account doesn’t require lining up at a bank branch and filling out reams of paperwork. A free  Zeller Transaction Account  can be set up online in a matter of minutes. From here, you can create as many Transaction Accounts as you need, for allocating money to different business locations, setting aside savings or assigning petty cash. Discover how the Zeller Transaction Account compares to the best business bank accounts in Australia. Business Debit Card:  From purchasing stock to paying bills, suppliers or employees; starting a business means spending money. So, naturally you’re going to need a debit card that is linked to the funds you’ve allocated to your business.  Zeller Debit Card links to your Zeller Transaction Account and can be used to make purchases in-store or online, for any business-related expenses. EFTPOS Terminal for In-Person Payments: If you’re planning a bricks-and-mortar shop front or mobile business, you’ll need a fast and easy solution for accepting card and contactless payments.  Zeller EFTPOS machine is the next-generation solution for in-person payments that processes all cards — including American Express — at a single low rate, with no monthly rental fees. It can be integrated with point-of-sale systems and also offers you the ability to pass on the merchant fee to customers through surcharging. The Zeller Terminal ultimately gives business owners more flexibility and peace of mind knowing they won’t be stung with a hefty fee at the end of the month. Invoicing Software for Online Payments: If you’re planning an online service business, you need to make it as easy as possible for customers to pay you. Zeller Invoices is a great way to get money into your business quickly, and hassle-free. When a customer pays your  online invoice with Zeller, by simply using their credit card — no bank transfers necessary — the funds are settled into your Zeller Transaction Account nightly, 365 days a year (or into a third party bank account the next business day) so you can spend your money as you earn it. Financial Tracking & Reporting System:  At its most basic, this could be an Excel spreadsheet. But, as you’ll soon find out: business owners need to save time wherever possible. This starts with eliminating manual data entry. With a Zeller Transaction Account, all your transactions and expenses will be instantly synced to your Zeller Dashboard and  Zeller Mobile App  where you can track all the money coming in and going out, in real time. Being able to see the net balance of your funds over time allows you to quickly identify spending patterns and make informed business decisions: from rostering to inventory orders or when to push marketing. It will also allow you to calculate the length of your cash cycle, that is, the time it takes for your business to convert its spending (inventory, resources etc.) into cash inflows from sales. 10. Market your business To get your business noticed and draw in potential customers, you’re going to need to do some marketing. What strategies work is going to entirely depend on your product or service and your target market. Therefore, understanding your customer is going to be key in getting your business name in front of their eyeballs. There’s seemingly endless possibilities when it comes to marketing, but here are the major tactics you need to consider: Social media marketing: Facebook, Instagram, Twitter, and LinkedIn are great places to start promoting your business and connecting with potential customers. Content marketing:  Creating and sharing valuable and informative content, such as blog posts or videos related to your product or service is a great way to demonstrate your expertise and attract customers. Search engine optimisation (SEO):  While a little technical, having a basic knowledge of SEO will help your website and content rank higher in search engine results pages. Print marketing: This could include flyers, brochures, business cards, posters, billboards, direct mail, and newspaper or magazine advertisements. Pay-per-click (PPC) advertising: This involves placing ads on search engines and social media platforms, and paying each time a user clicks on your ad. Influencer marketing: Find influencers or partners in your industry who can help to promote your brand and products to their followers. Local marketing:  Target customers in your local area through tactics like local SEO, online directories, and community events. Once your business is up and running and you have a pool of engaged customers, you can also try the following tactics: Email marketing:  If you have a subscriber base, send regular email newsletters and promotional messages to your subscribers to alert them to new products or special offers. Referral marketing:  Encourage your existing customers to refer their friends and family to your business in exchange for rewards or discounts. Get started We understand you’ve got a lot to think about. So, to make life easier for yourself, Zeller will help you out with everything finance and payments related. We’ve worked with thousands of businesses in industries spanning hospitality and retail, beauty, tourism, medical and everything in between. Our Sales Team loves speaking to new business owners to guide them through the weeds and help them get set up. Whether you’re ready to press “launch” or are still in the early stages of developing your idea, our team is always happy to answer any questions you may have. Contact Zeller Sales, or visit our website to learn more about how we can streamline your business.

Budgeting for Business Owners: 8 Common Mistakes to Avoid

Every successful business needs a budget. Running a small business with great success often hinges on executing a well-curated business plan. One of the most crucial elements of small business finance and an effective business plan is implementing a solid budget. When you take time to create a financial roadmap for your business, it will serve to navigate you through each financial year so you don’t end up in financial stress. A good budget plan will keep you organised and help you make savvy financial decisions that benefit your business. It’s important, however, that you know how to avoid some of the most common budgeting mistakes that land small businesses in hot water. In this article, we will explore what these mistakes are and how you can avoid them. Mistake 1: Reusing last year’s budget plan Many business owners allocate time to review their budget and plan for the year ahead just before the start of the new financial year. While it’s normal to use your existing budget as a guide for establishing the next one, be careful not to cut corners by simply reusing the last plan as your new budget plan. It may seem convenient and time-saving, but in the long run this strategy is unlikely to be advantageous to your business. In the space of an entire year, your business has evolved, for better or worse, and has been exposed to a different financial climate. From pandemics, to recessions and even natural disasters, there are a range of influences that need to be taken into account each financial year. Spending habits shift in this period too. You may have more or fewer expenses, or a larger or smaller income. All these factors need to be considered in your upcoming budget plan in order to maintain an accurate and realistic budget that is relevant to your current situation. Knowing the nuances will help you determine where you can cut the fat to increase your profit margins. When putting together a new budget it’s a must to analyse last year’s plan, but ensure you update it adequately to reflect your current business circumstances, rather than replicate it entirely. Mistake 2: No business strategy A budget is important, but without a solid business plan in place you’re flying blind. A business plan is the path that leads to your growth, where you outline your business goals and map out the steps you need to take to achieve them. You’ll also determine how much money you need to spend to reach your goals. If you want to refresh your business strategy or are just getting your business started and aren’t sure how to create a business plan, read our guide on How to Write a Business Plan . Mistake 3: Low prices Many new business owners are keen to get the edge over their competitors. One way they attempt to attract customers is by beating their local competition on price. If you already have tight profit margins, then this strategy is going to cause your business financial strain. Not only that, but you might find customers avoid you if they view your prices as being indicative of the quality of your products or services. If you’re re-thinking your prices or just getting your business started and aren’t sure how to set your prices, read our blog on Retail Pricing Strategies . Mistake 4: Spending too much, too soon Starting up a new business takes a lot of time and energy. When money does begin to come in, it’s exciting — your hard work is paying off. It can be tempting to start spending money as soon as you start receiving revenue. However, it is often a wise move to spend slowly and focus on building up a financial buffer first. Reinvesting is a good business strategy, but prioritising debts like business loan repayments and establishing an emergency fund will keep your business in a strong position. Mistake 5: Underestimating expenses When it comes to small business finance, expenses can stack up at an alarming rate. Don’t underestimate these costs. Be realistic with your budget forecast and ensure you keep track of all your upcoming expenses and any price changes that could be on the horizon, such as changes to the cost of: materials rent labour travel advertising equipment shipping, and more. If you want to save money, examine all your expenses and look for reasonable ways you can do it for less. For example, a portion of your takings will go to merchant fees. Some merchant services providers charge variable transaction fees, depending on the card used by the customer. That makes it difficult to forecast your transaction fees at any point in time, meaning you’ll probably be paying more than you expect. Zeller Terminal accepts every card payment for one low fee of 1.4%, whether tapped, dipper or swiped. There are no hidden charges or fees, so you won’t find any nasty surprises in your merchant statement . Mistake 6: Slow cash flow Late invoice payments negatively affect your cash flow. It reduces your own ability to pay bills and suppliers, and can leave you in a pile of debt. When you’re creating your budget, keep an eye on the patterns of your cash flow and how they influence your business performance. If you find yourself paying for products well in advance of the date that your customers purchase them or pay your invoices for them, then you will need to plan accordingly to cover yourself for these in-between periods. Struggling with customers that don’t pay on time? Read The True Cost of Late Payments (and How to Reduce it) . Mistake 7: A one-sided plan When creating a business budget, it’s necessary to cover all the angles. To be fully prepared, it’s ideal to create at least three different scenarios in your plan. By doing this you can envision the different financial directions your business could go, and be ready to act should any situation arise. It’s important to have a good understanding of what your key drivers are and how they can influence your business results. These include, but are not limited to, your sales volumes, profit margin variations and pricing changes. When you know your numbers, you can set up different scenarios. For example, you can ask yourself questions such as, “what would happen if my sales went up by 15%?” or, “what if I lost my biggest client?” Cover as many variables as possible to see what outcomes they would lead to so you can be prepared to resolve any problems that come up quickly and easily. Mistake 8: Forgetting to monitor it It’s essential to review your budget frequently. Many businesses create a budget, and then forget about it entirely, wasting their precious time and a golden opportunity in the process. When you regularly monitor your budget, you’ll not only deepen your understanding of what needs to change or be improved upon for future budgets, but you can also track your actuals against your forecasts. This will help you determine whether or not you’re moving closer to your goals, or whether you might need to change tack. Budgeting for business owners can be a time consuming process but the benefits are numerous and will serve to help you reach your business goals. By avoiding the common mistakes many businesses make, you will be well prepared for any situation that may arise. For more tips on how to achieve success in your business, sign up to our Business Blog .

A Simple Guide to Registering a Business Name in Australia

What’s in a name? Everything when it comes to business. In this guide, we explain what you need to consider when choosing a trading name and answer all your questions about registering a business name, from costs to renewals, transfers, and trademarks.   What is the difference between applying for an ABN and registering a business name? When you apply for an Australian Business Number (ABN ), you are declaring your intention to run a business. When you apply for an ABN without also registering a business name, then your business name will automatically be your first and last name (eg. John Smith). If you plan on trading under a name other than your own name (eg. ‘John’s Car Cleaning’), then you will need to register the business name. While ABNs are managed by the Australian Business Register and business names are managed by ASIC , you can still register for both at the same time using the Australian Government Business Registration Service . Similarly to ABNs, business names are registered nationally, so if your business expands, you will not need to register again with other states or territories. Why do I need to register a business name? First and foremost, if you plan on trading under any name that is not your own, you will be legally obliged to register a business name. Beyond its administrative purpose, having a recognisable business name is also a great way for your customers to identify you and distinguish you from your competitors. A good business name will also give your operation more legitimacy and professionalism when written on invoices or social media for example. How to choose a business name Whether you’ve already got a name in mind or you’re in the process of brainstorming, there are a number of factors you need to consider when deciding on your business name. Relevance and memorability: Your business name either needs to reflect the nature of your business and the products or services your offer (eg. ‘Wedding Cakes by Jessica’) or it needs to be simple and memorable (eg. ‘Google’). Ideally it will be both! Uniqueness: Do some market research to ensure your name sets you apart from the competitors. You cannot register a business name that is identical or too similar to the registered name of another Australian business or company. You can check whether your business name is available using the business name check tool , and the TM Tracker to check whether the name has been trademarked. Branding potential: Consider how the name fits with your overall branding strategy, including logos and slogans. If your name is too long, it will be harder to create simple, identifiable marketing materials. Domain availability: If you plan on building a website, it’s important to know that the domain name (the URL or web address that people use to access your site) is available before deciding on it. Your web address needs to accurately reflect your business name as this will make it easier for your customers to identify you online. One quick way to check for the availability of a domain name is to do a simple web search. Type in the name you want to use, including domain extensions, such as .com, .com.au, or .net. Search engine optimisation (SEO): A business name that includes relevant keywords related to your product or service can improve your visibility in search engine results. If your business just serves a local area, including the location in your business name can also boost your rankings in local search results. Social media handle availability: In certain industries, an Instagram or TikTok account can be just as powerful as a website, therefore checking the availability of a social media handle (the “@” symbol followed by the username) is as important as a domain name. The simplest way to check this is to enter your proposed business name into the social media’s search bar. Appropriateness: Culturally and socially speaking, it’s important to consider whether the name is appropriate, ensuring it doesn’t include any potentially offensive language. There are also certain words, characters, and expressions that are restricted. You can learn more about these on the Australian Securities and Investments Commission (ASIC) website. How do you register a business name? There are three ways to register a business name: The Australian Government Business Registration Service – this service combines several business and tax registrations in one place. If you haven’t yet applied for an ABN, then you can do so and register your business name online at the same time. ASIC Connect – If you already have an ABN, you can apply for a business name directly with ASIC Connect . Private service provider - You can choose to register or renew your business name with a private service provider (PSP). This could be an accountant, solicitor, or another business that provides online services with ASIC. They will usually charge a fee for their services above what ASIC would charge. Note that when you register for a business name, you’ll need to choose a business structure (a sole trader, company, partnership, or trust, for example). It is therefore important that you do your research before applying to ensure you know what kind of structure is most suitable for your business. If you’re not sure, click here to take the ‘help me decide’ quiz. How much does it cost to register a business name? The fees to register your business name with ASIC are: $42 for 1 year $98 for 3 years How long does it take to have your business name registered? Completing an online business name application should take approximately 12 minutes. If you have an ABN, have submitted the required documents, and made payment, you can expect confirmation within: 2 business days for credit card payments Up to 5 business days for payments made via BPay, EFT, or bank transfer Can you have multiple business names under one ABN? You can register multiple businesses under the same ABN, provided they share the same business structure. If a business has a different structure, you will need to apply for a new ABN. For example, if you are a sole trader working as a carpenter, and you plan on starting a private building company with a business partner, together you will need to apply for a new ABN and register a name for the new business structure. On the other hand, if you are a sole trader, working under the name, ‘Wedding Cakes by Jessica’ and you decide to open a small café under the same ABN and business structure, you simply have to register the name of the new venture through the ASIC website. Can I change my business name after registering? No, once you have registered your business name, you cannot change it. If you decide you’d like to trade under a different name, you will need to register a new one. When do I need to renew my business name? You’ll receive a notice to renew your business name by email at least 30 days before your renewal date. Once you receive your renewal notice from ASIC, you can renew your business name through ASIC Connect or ASIC’s ‘Pay now’ service. If you don't renew your business name, on time, the name may be cancelled. If you have multiple business names, or also have a registered company, you can ask ASIC to align the renewal dates for those registrations. How much does it cost to renew my business name? It costs the same amount to renew a business name as it does to register: $42 for one year $98 for three years How do you transfer a business name? If you are selling your business and need to transfer the business name to the new owner, you can do so on the ASIC Connect website by following these steps . Do I need to trademark my business name? While ASIC works to ensure that no two businesses can register the identical name, it cannot prevent another business from registering a name that is similar . What’s more, when you register a business name with ASIC, it does not grant you exclusive rights to that name, meaning that someone else could still trademark the name. If you would like to protect your business name, you can do so with a trademark. A trademark is an intellectual property (IP) right that sets your distinctive brand, product, or service apart from competitors in the market. It gives you exclusive rights to use your business name in connection with the goods or services for which it is registered, helping prevent others from using a similar name that could confuse customers. It also gives you legal recourse to take action against anyone who infringes on your trademark, including stopping them from using your business name and potentially seeking damages. Starting a business? Zeller has your finances covered. We know you’ve got a lot on your to-do list, but thanks to Zeller you can cross off ‘open a business transaction account’ in as little as six minutes. Plus, with a suite of tools to help you accept payments, manage your expenses and track your cash flow, Zeller will ensure you start your business on solid financial footing.

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